Knowledge Center

Tax Breaks and Concerns

HomeWork Solutions, Inc., December 2018 PLEASE NOTE: All Form 1040 and Schedule H line numbers refer to the forms for the tax year 2018 in these annual payroll tax filings questions. How do I distribute the many copies of Form W-2? Complete and Essential Payroll Clients: Your Employee W-2 forms are available for distribution in your... Read more »

Late payment of employment taxes will trigger penalties and interest charges to the taxpayer. The notices for an IRS late tax penalty are next to impossible to decipher. Statute of Limitations There is NO statute of limitations on the failure to file and report payroll taxes (Social Security, Medicare, Unemployment, withheld income taxes). There also… Read more »

HomeWork Solutions, Inc., November 2018 The nanny tax wage test, the minimum amount of wages paid that obligates the household employer for household employment taxes, is $2100 of wages paid to an employee in the years 2018 and 2019 (or $1000 paid total in a calendar quarter for FUTA tax). Nanny tax legislation enacted in 1994… Read more »

The Virginia Department of Revenue is requiring e-filing of employer withholding tax returns and payments. Here are some tips for filing and paying the Virginia employer withholding tax. Household employers find that eForms is an easy and intuitive filing scheme. Whether you have little to no computer experience or you are an expert, eForms is the… Read more »

The Social Security Administration returns forms W-2 with name/number mismatch problems to employers for corrections. The Internal Revenue Service assesses penalties to employers filing Forms W-2 with mismatched names and Social Security numbers. A mismatch occurs when the name associated with a SSN does not match agency records. Notices of the proposed incorrect W-2 penalties,… Read more »

There are two popular household employer tax breaks for families to make care more affordable. A family may only use up to $6000 paid to a nanny or senior caregiver (qualified expenses) in any particular year. These tax breaks are not income-restricted. They do require, however, that both spouses must pass the “work-related expense test.” You… Read more »

When you hire a nanny you may qualify for a childcare related personal income tax breaks. There are two popular strategies that families with child care expenses use to minimize their personal income taxes and are in addition to the Child Tax Credit, which in 2018 rises to $2000 per child and is available to… Read more »

Yes. The 1995 Federal legislation, the “simplification” of the nanny tax rules, began a cascade of changes that continues today. Nanny tax rules alone are not the only regulations the household employer must follow. Numerous changes to federal and state labor laws specifically impact household employers. Federal Employer Identification Number required for all household employers. Reporting may… Read more »

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HomeWork Solutions specializes in providing household employers and their tax preparers real solutions for nanny tax compliance. We are nationally recognized experts in the field of household employment taxes, regularly consulted by media such as the New York Times and Wall Street Journal.